TORONTO—At least one mortgage broker here has called for a boycott of Meridian Credit Union after it has refused to allow its broker partners access to a 1.49% mortgage product it is offering.
As CUToday.info reported here http://www.cutoday.info/Fresh-Today/Mortgage-Offers-1.49-Fixed-APR-And-A-Unique-Term, that mortgage comes with an 18-month term and is aimed at home investors looking to flip a property.
On MortgageBrokerNews.ca, one person wrote, “Tip of the hat to Meridian for trying this. Hopefully, it won't bite the client's [when] in 18 months they get a considerably higher rate. So, we stop sending Meridian business until they enable us to provide that rate.”
But other commenters have been more positive. “This is a really smart play. Secure new clients now for 18 months at a really low rate and wait on the renewal to make the profit,” observed one person. “What percentage of new clients do you figure they will retain at renewal? 75-85 per cent? Well played.”